Interested in installing solar and getting a solar tax credit? Now is the time! In order to claim your solar installation on your 2021 taxes and receive the 26% credit, you’ll need to install prior to the end of 2021. According to energy.gov, the federal residential solar energy credit is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar photovoltaic (PV) system. Solar by Barron is the experienced team that can help with your installation! Read on to learn more.
Financial Incentives
Otherwise known as an Investment Tax Credit, an ITC can be claimed for homeowners who:
- Have or had their solar PV system installed between January 1, 2006 and December 31, 2023 (Remember, to be eligible for the 26% credit, your system needs to be installed by December 31, 2021)
- Have a solar PV system located at their primary or secondary U.S. residence
- Own their solar PV system
- Are using their solar PV system for the first time
What Expenses Are Included?
- Solar PV panels or PV cells used to power an attic fan (but not the fan itself)
- Contractor labor costs for onsite preparation, assembly, or original installation, including permitting fees, inspection costs, and developer fees
- Balance-of-system equipment, including wiring, inverters, and mounting equipment
- Energy storage devices that are charged exclusively by the associated solar PV panels, even if the storage is placed in service in a subsequent tax year to when the solar energy system is installed (the energy storage devices are still subject to the installation date requirements)
- Sales taxes on eligible expenses
While the initial cost of solar panel installation can seem daunting, homeowners see significant savings on their household utility bills every month. With a professionally installed and serviced solar energy system along with the right battery backup system to store excess energy, you’ll see hundreds of dollars in savings in just a few short years.
In addition to the financial incentives offered through federal tax credits, Puget Sound Energy supports net-metering. Through net-metering, any excess electricity produced is returned to the electrical grid as credit, which can later be used by your household. This is just one of the state and local incentives that are available to homeowners throughout Whatcom, Skagit, Island, Snohomish, and San Juan Counties.
How to Boost Your Energy Efficiency Even More
Homeowners interested in solar are typically those who are interested in saving money. This is understandable! Did you know there are small steps you can take to boost your electrical efficiency even more, in addition to going solar? For instance, closing your blinds and shades to south-facing windows during the summer will help with AC efficiency, and using your ceiling fan will help distribute air more evenly from your HVAC systems.
These are just a couple of the ways you can boost your energy efficiency and help your budget. Please don’t hesitate to reach out to our Home Performance Experts for more advice and expert HVAC and solar services.
Contact Solar by Barron today to learn more about going solar. We’ve been serving your area since 1972, with a mission of Improving Lives™. We look forward to helping you!